Question: Operating Expense vs Capital Expense
We are shifting how/when we raise funds. We want to do a spring fun run to set the budget for the following school year operating budget - field trips, teacher appreciation, class shirts etc. Throughout the year, we will hold specific fundraising activities - fall carnival, spirit night dinners and those funds will be used to fulfill the wish list of larger improvements to the school/technology - new marquee, updated playground equipment. We will hold the money in two separate accounts and plan to have a savings account for our operating expenses and always carry some amount over. We want to make sure this is acceptable. It's a change from how we've done it in the past (estimate income for the year and fundraise in the fall).
Asked by Anonymous
Community Advicegjcoram writes:
If you do a spring fundraiser, it seems you might have trouble motivating the families of the older students to donate, if they won't be at the school to benefit. But generally, it's your families rather than the IRS who need to approve of this plan. You will want to watch out that your targeted fundraisers don't unduly restrict your ability to use any excess funds (if you fundraise specifically for a new marquee and end up raising $1000 more than you need, you want to be sure that your solicitation material said the funds would be used for the marquee and other PTO activities).
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